ICO Analysis: RainCheck

There are a lot of leaks in the way offline businesses are acquiring customer loyalty. They are spending millions on out of style, ineffective strategies. A new project called RainCheck uses AI, big data, and distributed ledger technology, allowing retail brands to both track and influence online product discovery to in-store sales. They offer card-linking (debit/credit), where people can add offers, loyalty points or cash-back to any debit or credit payment card.

“Loyalty should be like other new technologies, simple, seamless, cross-border and rewarding.”

The team at RainCheck has been building out the cloud-based platform for over three years, and are now bringing that technology onto the  Stellar Blockchain. Taking a data-centric approach to understanding businesses customers, RainCheck is able to measure when someone discovers a product online and when, and where, they made that purchase offline.

“The data that is gathered along that journey was believed to be impossible to gather until now. Data is at the core of what we do and we measure multiple data points throughout the RainCheck Platform. The O2O commerce loop product offering involves shoppers, retail brands, payment service providers, financial institutions and channel partners. The core functionality enables a seamless way to track, measure and reward users from product discovery to purchase. Most existing solutions are web based and only really are able to measure online activity, however with the RainCheck solution it becomes omnichannel and transcends online and offline worlds together.”

Advantages to using RainCheck platform:

  • Retail Business– Gather crucial data on users online to offline buying habits which previously weren’t available.
  • Users– Awarded in RAIN token for discovering online and offline products, then buying products with rebates, discounts, and cash backs.
  • Payment Processors– Can capture online sales derived from online discovery and increases their revenue channels through commissions or charging fees via the O2O cycle.
  • Channel Partners– Distributors such as online publishers could represent new revenue channels for businesses.
  • Financial Institutions– Banks can create more personalized card schemes for their customers by having access to SKU-level data.

Token

The RAIN Token will be a utility token that is awarded for shopping in general and around marketing activities associated with products and brands on the network. People can be rewarded for saving items to their wishlist and making a purchase of those items both online and offline. Tokens can be exchanged and transferred between friends and family on the network. It will be used as the value unit within a loyalty DAO. And will be staked by brands in relation to their community membership.

Thanks to the micropayments feature, RainCheck is able to monitor rewards points value available from organizations in real time. People who receive or purchase RAIN Tokens will be able to trade these between loyalty programs and schemes

 

According to the company, “Users will be rewarded with RAIN Tokens for signing up and registering with RainCheck and receive bonuses when referring others to also signup. Users will also be rewarded with Tokens for simple tasks such as RainChecking products online, visiting stores and completing a purchase. The anonymized data points that are collected will be used for reverse marketing for all participating brands. This data will reveal the online-to-offline attribution of sales for the first time for all brands.”

Distribution:

  • 35% Crowdsale
  • 25% Rewards Pool
  • 15% Strategic
  • 10% Community
  • 5% Team
  • 5% Bounty
  • 3% Option Pool
  • 2% Advisors

Team

RainCheck was established in 2014, their current team consists of 11 employees and 12 advisors.

Cameron Wall is the Co-Founder. Stanford Grad. 25 years of experience in tech. “Founded various tech startups included hardware and software-based systems. Some successful exits and some failures. Technology and timing of the market are crucial to success. ”

William Lin is the other Co-Founder. Lots of experience as a Mobile Developer, including 8 years at Motorola.

Peter Bremner is the Chief Partnership & Strategy Officer. 20+ years tech experience. Was recently Director at AwareIT where he developed relationships with companies like HP, Cisco, and IBM.

Bin Wang is an expert in Blockchain and Big Data and has four years as Software Engineer at Motorola. He spent six years as Tech Manager at Kuyun Interactive.

The 12 advisors all look like legit experts in their specific fields. Pretty Impressive.

Verdict

We barely scratched the service when it comes to explaining this project. Please dive into the whitepaper to learn all about things such as their loyalty scheme smart contracts which will be released in Q1 2019.

Risk

  • Plenty of competition with more to come soon.  (Loyalty Token, Bitrewards, Incent) -1
  • Would like to see much more transparency when it comes to what they plan to do with the funds. -1
  • Even though they will need lots of marketing, The $24 million hardcap could scare investors away.-1
  • The App has been out at least since 2016, yet only has 500 downloads on google apps store. Telegram has only 200 members. -1.5

Growth Potential

  • Real work being done. Active GitHub and the whitepaper is clearly written by professionals. Been around since 2014, App available here.+2 https://www.getraincheck.com/home/
  • The value of the loyalty rewards market is almost $500 billion annually with global marketing spend soon reaching $1 trillion ($225B Digital) +1
  • The team looks very capable. +2
  • One of the first projects on Stellar, should get love from the community. +2
  • Revenue model. Generated by subscription, transaction fees, loyalty marketing and data services. +1.5
  • RainCheck will eventually develop its own payment gateway and become a Stellar anchor by deploying its own Stellar Core, Horizon, Bridge Server, Federation Server and Compliance Server. +1.5

Disposition

The team is talented enough to know Stellar is a better option than Ethereum for this project. That alone puts them in front of 95% of all smart contract apps. However, the lack of fanfare/users after being out since 2015, is concerning. 5.5/10

Investment Details

Featured image courtesy of Shutterstock.

Author:
Joshua Larson is also known as the "Bullshit Man" for his ability to spot it a mile away. Avid ICO researcher and contributor. Former professional poker player/backer. Spent 10 years analyzing hand history, stats, and player data. Discovered blockchain in late 2016, and never looked back. He now uses his analysis skills to investigate ICOs full time. What a perfect match, because in today's crazy world of ICOs, information, passion, and diligence = dollar bills!